Microsoft Asks Ex-Employees to Return Part of Severance Money

By Diane Smith
22:21, February 23rd 2009
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Microsoft Asks Ex-Employees to Return Part of Severance Money

Microsoft accidentally paid the 1400 workers it laid off on January 22 more than it should have and now sent most of them a request to return a part of that money.

This is a second mistake if you ask me. Bad PR Microsoft!

The number of ex-Microsoft workers asked to return part of their severance payment is unknown. The software giant reportedly cited an "administrative error" when the money were given and an overpayment resulted. The letters sent to the former Microsoft employees asked them to return a portion of their severance in the form of a check or money order in a term of 14 days.

The 1400 layoffs of last month are the first chunk of the 5000 employees the software giant said it would fire in the next year and a half. The job cuts will be made in research and development, marketing, sales, finance, legal, human resources and IT operations.

"An inadvertent administrative error occurred that resulted in an overpayment in severance pay by Microsoft," wrote the letter, according to the blog TechCrunch.

"We ask that you repay the overpayment and sincerely apologize for any inconvenience to you."

Some of the laid off employees were reportedly paid less than they should have. The letter requesting the others to return part of the money they received when leaving the company was sent on February 18.

Microsoft Corp estimated that the job cuts and other moves would cut the company’s annual operating expenses by $1.5 billion and capital expenditures for 2009 by $700 million.



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